China Duty Free Group (601888) expects its net profit in 2025 to decline by 15.97% year-over-year, affected by factors such as goodwill impairment losses of subsidiaries.

China Duty Free (601888) announced on March 21 that in 2025, the company achieved operating revenue of 53.694 billion yuan, a decrease of 4.92% year-on-year; net profit attributable to the parent company was 3.586 billion yuan, down 15.97% year-on-year.

China Duty Free stated in the announcement that in 2025, the company’s main business gross profit margin and operational efficiency continued to improve, with the main business gross profit margin increasing by 0.51 percentage points year-on-year, and inventory turnover rate increasing by about 10% year-on-year. In particular, in the fourth quarter of 2025, the gross profit margin of the main business increased by 4.12 percentage points year-on-year. According to the requirements of enterprise accounting standards, the company made impairment provisions for goodwill of key subsidiaries, which had a certain impact on net profit. Preliminary estimates show that after excluding the impact of goodwill impairment losses, in the fourth quarter of 2025, net profit attributable to owners of the parent increased by 150.63% year-on-year.

According to industry sources, the company mainly engages in duty-free tourism retail business, with product categories including tobacco and alcohol, fragrances and cosmetics, watches and jewelry, apparel and bags, electronics, and food. Additionally, the company is involved in the investment and development of commercial complexes centered around duty-free business.